In Q1, the company recorded a decrease in sales of 7.6%, a decrease in EBITDA of 38.1% and a net loss of RON 12.3m.

In Q1, sales of Sphera amounted to RON 198.3m, representing a decrease of 7.6% YoY. Such a decrease came mainly due to Covid-19 crisis, following extensive lockdown measures implemented around the globe.

Restaurants were mandatory closed in Italy starting with the second week of March and in Romania, a military ordinance drastically restricted the movement of people and closed all exposed business, starting with the fourth week of March. Starting 18th of March 2020, the restaurants are closed, with the temporary closure estimated to last until 15th of May 2020. As a result, in March the Group witnessed a 50% overall decrease in net sales. The company notes that during this period, the focus was shifted on Delivery and Drive Thru channels in order to mitigate the negative impact of the crisis (closed food courts).

When looking at operating expenses, they reached RON 190.4m (-0.8% YoY). The decrease mostly on the back of lower food and material expenses of 13.9%. As a result of the above mentioned, EBITDA decreased by 38.1% to RON 16.8m. Such a result puts the EBITDA margin to 8.5% (-4.2 p.p. YoY).

Restaurant operating profit decreased to RON 7.9m (-65.3%). Excluding the impact of IFRS 16, restaurant operating profit reached RON 7.4m. General and administration (G&A) expenses reached RON 13.8m, representing an increase of 6.6% YoY.

In Q1, the company recorded a net loss of RON 12.3m compared to RON 1.3m in Q1 2019.